Nationwide issue for small businesses
A recent survey from small business referral network Alignable found that August saw the highest rent delinquency rate among small businesses to date for the year. The delinquency rate was measured at 40% in the U.S., up 6% over July’s delinquency rate of 34%. The delinquency rate had not been this high since March 2021, which was mid-pandemic.
According to the survey, the big factors contributing to rent delinquency include rent spikes, gas prices, cost increases in supplies and labor, elevated interest rates, reduced consumer spending and “other emerging recessionary trends”.
Forty-five percent of those polled said their rent is at least 50% higher than it was before the pandemic, with 24% saying it’s at least twice as high. Twelve percent said their rent is more than three times higher than before COVID.
“While several landlords were able to defer rent requests during the worst months of COVID, over the past few months, many have had to ask for rent payments,” says Chuck Casto from Alignable. “In many cases, they’re small business owners, too, and they’ve gone without much of their income for over two years. Many tell us they can’t hold out any longer.”
Fifty-three percent of minority small business owners polled reported not being able to pay their rent in full and on time. Forty-two percent of women-owned businesses said the same. Forty percent of veteran business owners reported this experience, with a major jump from 28% the previous month. Forty-one percent of non-minority business owners could not pay their rent this past August.
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Alpine Bank Staff
Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.
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